SILVERGATE EXCHANGE NETWORK
There have been a lot of questions about what caused the sideways BTC price action. It is probably due to Silvergate Exchange Network (SEN)on Friday last week. The Silvergate Exchange Network provides an opportunity for cryptocurrency firms to trade fiat and cryptocurrency nonstop just like the cryptocurrency market. The absence of the Silvergate Exchange Network could mean institutional investors are only permitted to deposit and with the funds during normal banking hours. It is not a big surprise that all the Blue Chip cryptocurrency firms that Silvergate was banking abandoned Chip shortly before Silvergate declared the closure Silvergate Exchange Network.
Interestingly, most of these cryptocurrency firms as now using another cryptocurrency bank called Signature. The issue we have here is that Signature is trying as much as possible to reduce its exposure to the cryptocurrency space because of all the uncertainty going on with the regulatory scrutiny. Back in December last year, Signature let us know that they would be reducing their cryptocurrency deposit by 10 billion dollars.
You should know that Silvergate and Signature are experiencing regulatory scrutiny from the US regulators as massive agendas to keep cryptocurrency out of the banking sector. You should know that this operation keeps crypto out of the banking sector began in January and appears to have moved to if next phase as of late February. This is due to the fact the FED, FDIC, and OCC recently released another statement from the United States banks that is very similar to the one they put out in January.